Daily analysis of USDX for July 06, 2015

On the daily chart, the USDX is doing a pullback after successful testing at the resistance level of 96.57. The downside target is set around the support level of 95.74. We should expect a rebound over there. However, we could expect more bullish moves on this Index as it remains trading above the 200 SMA and the MACD indicator is still positive.

The Index is trying to fill the bullish gap left at the monday early session opening and we could expect a strong bottom at the support zone of 96.13. There are more bullish price actions happening above the support level of 95.89, but a breakout below that low will unleash the bearish force and push the USDX lower.

Daily chart's resistance levels: 96.57 / 97.57

Daily chart's support levels: 95.74 / 94.66

H1 chart's resistance levels: 96.38 / 96.65

H1 chart's support levels: 96.13 / 95.89

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the US Dollar Index breaks with a bullish candlestick; the resistance level is at 96.38, take profit is at 96.65, and stop loss is at 96.13.